Prospecting in real estate refers to any activity that is designed to generate interest in an agent’s services so that new business can be secured. It’s the first step in the real estate sales funnel, with agents often using what many consider old-school or traditional marketing techniques — such as cold-calling and direct mail campaigns — to help them identify and secure new business leads. And lest you believe these types of storied approaches aren’t (or can’t be) still relevant or effective, consider this: good, old-fashioned “word-of-mouth referrals” are still providing agents with the vast majority of their new clients (per 2019 NAR Trends Report Exhibit 4-6).
The trick then isn’t so much changing the ways agents prospect as much as it is changing the way in which they think about prospecting in general. Take a look at these four tips for improving your own real estate prospecting practices:
Identify Target Market
While anyone can be a prospect, knowing who is most interested in potential real estate options makes prospecting go much more smoothly. Rather than blindly approaching any potential prospect, you can narrow down your options with a precise marketing mindset.
For instance, first-time homeowners and renters are excellent prospects as they would be much more likely to turn into a lead, as would homeowners who have high equity and are nearing the age where they might be thinking about downsizing soon. An excellent way to do this is by using the Haines Criss+Cross tool to accurately target these prospects and generate more leads! Similarly, Haines Property Connect can be used to target absentee investors that might be on the lookout for additional properties to rent.
Determine How You Are Going to Reach Them
Once you have determined your target market, you still need to get in touch with them. This doesn’t have to be elaborate, but choosing the proper method with which to reach any potential prospects is worth contemplating. There are several methods that can be utilized, including emailing, mailing them directly, or even cold-calling. These means of contact—all of which are offered through Haines Property Connect and Criss+Cross—are all helpful in their respective ways, but you may find that one method might prove more beneficial for certain prospects than others.
What is Your Message and How Do You Stand Out
After you’ve reached out, you need to ensure that you’re able to captivate your prospect with your messaging and stand out from other potential agents. One of the best ways to go about this is to be genuine in your delivery. Prospects are just people, and people know when they’re being given a sales pitch. Instead, go about it with an authentic desire to help them get what they need. Know how to effectively convey your points to them and ensure that they understand where you’re coming from. The goal is to turn them into a potential lead, and presenting a strong case to do so is the most efficient way to make that happen.
It’s not enough to simply reach out to your prospects; you need to follow up with them, too! This doesn’t mean you should spam them with messages and calls non-stop, but take the time to conduct some active research about them using their professional online presence and contact information. Take into account their level of wealth, how they seem to hold themselves, and any other potentially relevant criteria that would make them a suitable prospect candidate.
After a day or two, reach back out to them with an email or DM to make the next move. You don’t want to shove them, but simply give them a nudge in the right direction if they seem interested. If they come back with questions and concerns, answer them accordingly.
Want to Learn More About Prospecting in Real Estate?
Prospecting in real estate doesn’t just take time, it takes dedication. And the right set of tools. Our proprietary databases, combined with our training and support, mean that our clients are better equipped to make meaningful contact with the prospects most likely to need and want their services.
To learn more about making your own prospecting in real estate more efficient, more effective, and more profitable, please contact us today.